Big Tech is borrowing like never before

Major technology companies like Nvidia, Meta, Alphabet, and Amazon are increasingly turning to bond markets to finance their massive AI infrastructure buildout, with AI-linked global debt issuance projected to reach nearly $570 billion in 2026. This represents a significant shift from the traditional cash-flow model, as even the most profitable tech firms now view the data center race as too expensive and urgent to fund solely through operating cash. The timing creates risks for shareholders, as the Fed's new chair Kevin Warsh has adopted a more hawkish stance, potentially raising borrowing costs for these already-leveraged companies.